Metro4-SESARM Meeting
October 28, 2015
Ken Mitchell, Ph.D.
U.S. EPA Region 4
Atlanta, GA
Summary
Climate change is a threat in the U.S. -- We are already feeling the
dangerous and costly effects of a changing climate – affecting
people’s lives, family budgets, and businesses’ bottom lines
EPA is taking three actions that will significantly reduce carbon pollution
from the power sector, the largest source of carbon pollution in the US
o Clean Power Plan (CPP) – existing sources
o Carbon Pollution Standards – new, modified and reconstructed
sources
o Federal Plan proposal and model rule
EPA’s actions
o Achieve significant pollution reductions
o Deliver an approach that gives states and utilities plenty of time to
preserve ample, reliable and affordable power
o Spur increased investment in clean, renewable energy
www.epa.gov/cleanpowerplan
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Best System of Emission Reduction: Three Building Blocks
Building Block
Strategy EPA Used to
Calculate the State Goal
1.
Improved efficiency at power
plants
Increasing the operational
efficiency of existing coalfired steam EGUs on
average by a specified
percentage, depending
upon the region
-Boiler chemical cleaning
-Cleaning air preheater coils
-Equipment and software
upgrades
2.
Shifting generation from
higher-emitting steam EGUS to
lower-emitting natural gas
power plants
Substituting increased
generation from existing
natural gas units for
reduced generation at
existing steam EGUs in
specified amounts
Increase generation at existing
NGCC units
Substituting increased
generation from new zeroemitting generating
technologies for reduced
generation at existing fossil
fuel-fired EGUs in specified
amounts
Increased generation from new
renewable generating capacity,
e.g., solar, wind, nuclear, and
combined heat & power
3. Shifting generation to clean
energy renewables
Maximum Flexibility:
Examples of State
Compliance Measures
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Grid Connects Sources to Deliver Energy
•
•
This interconnection and diversity of generation offer cost-effective advantages
and approaches that many states have already shown can provide power while
emitting less CO2
In assessing the BSER, EPA recognized that power plants operate through broad
interconnected grids that determine the generation and distribution of power.
EPA’s analysis is based on the three established regional electricity
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interconnects: Western, Eastern and the Electricity Reliability Council of Texas
Category-Specific Performance Rates
Power plants are subject to the same standards no matter where
they are located.
Emission
Performance
Rates
(application
of BSER)
X
Unique State
Generation
Mix
=
Unique State
Goal Rates
Mass
Equivalents
EPA is establishing carbon dioxide emission performance rates for two subcategories of existing fossil
fuel-fired electric generating units (EGUs):
1. Fossil fuel-fired electric generating units (generally, coal-fired power plants)
2. Natural gas combined cycle units
Emission performance rates have been translated into equivalent state goals. In order to maximize
the range of choices available to states, EPA is providing state goals in three forms:
• rate-based goal measured in pounds per megawatt hour (lb/MWh);
• mass-based goal measured in short tons of CO2
• mass-based goal with a new source complement (for states that choose to include new sources)
measured in short tons of CO2
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Performance Rates -- Reasonable and Achievable
• Legally solid
• Aligned with the approaches Congress and EPA have always take to regulate emissions from
this and other industries
• No plant has to meet the rate alone or all at once
• Part of the grid and over time, or as part of their statewide goal
• Calculation mirrors the way electricity is generated and moves around the country
• In determining the BSER, EPA looked to the actions, technologies and strategies already in
widespread use by states and utilities that result in reductions of carbon pollution and puts
all utilities on a path to cleaner energy as a whole
• EPA is providing tools
• Model rule that relies on trading, and incentives for early investment make standards more
affordable and achievable than the ones the agency proposed last year
• States and utilities asked for these tools, and the source category-specific rate makes it
possible for them to be available
• “Trading ready” options for states and utilities – straightforward pathways that mean a
state doesn’t have to partner with any other state to take full advantage of the
opportunities for renewable energy, energy efficiency, etc. on the interconnected grid
• EPA will support trading implementation (e.g., through EPA-approved or administered
tracking systems)
• An emissions trading market, like the standards themselves, allows states and utilities to maintain fuel
diversity, in which coal can continue to play a substantial role
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Choosing the Glide Path to 2030
• Phased-in glide path
• The interim period runs from 2022-2029 and includes three interim performance
periods creating a reasonable trajectory (smooth glide path)
• Interim steps:
• Step 1 – 2022-2024
• Step 2 – 2025-2027
• Step 3 – 2028-2029
• Provided that the interim and final CO2 emission performance rates or goals are met,
for each interim period a state can choose to follow EPA’s interim steps or customize
their own
• Renewables and energy efficiency can help states meet their goals
• Investments in renewables can help states under all plan approaches to achieve the
Clean Power Plan emission goals while creating economic growth and jobs for
renewable manufacturers and installers, lowering other pollutants and diversifying the
energy supply
• Energy efficiency improvements are expected to be an important part of state
compliance across the country and under all state plan types, providing energy savings
that reduce emissions, lower electric bills, and lead to positive investments and job
creation
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Two State Plans Designs:
• States are able to choose one of two state plan types:
Emission Standards Plan – state places federally enforceable emission standards on affected
electric generating units (EGUs) that fully meet the emission guidelines
- can be designed to meet the CO2 emission performance rates or state goal (ratebased or mass-based goal)
State Measures Plan - state includes, at least in part, measures implemented by the state that
are not included as federally enforceable emission standards
- designed to achieve the state CO2 mass-based goal
- includes federally enforceable measures as a backstop
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More State Options, Lower Costs
• This chart shows some of the compliance pathways available to states under the final Clean Power Plan. Ultimately, it is up to the states
to choose how they will meet the requirements of the rule
• EPA's illustrative analysis shows that nationwide, in 2030, a mass-based approach is less-expensive than a rate-based approach
($5.1 billion versus $8.4 billion)
• Under a mass-based plan,
states that anticipate
continuing or expanding
investments in energy
efficiency have unlimited
flexibility to leverage those
investments to meet their
CPP targets. EE programs
and projects do not need to
be approved as part of a
mass-based state plan, and
EM&V will not be required
• For states currently
implementing mass-based
trading programs, the “state
measures” approach offers
a ready path forward
• Demand-side energy
efficiency is an important,
proven strategy that states
are already widely using
and that can substantially
and cost-effectively lower
CO2 emissions from the
power sector
State Plan Development
• Many states are discussing plans that would enable them to collaborate
with other states, including multi-state plans or linking plans through
common administrative provisions (i.e. “trading ready”)
• Trading-ready mechanisms allow states or power plants to use creditable, out-ofstate reductions to meet their goal without the need for up-front interstate
agreements
• If states elect to collaborate, EPA can support the option for trading as a suitable
choice for both EPA and states to implement the CPP
•
•
•
•
Examples of trading in NOx SIP and CSAPR, Acid Rain program
Appropriate for carbon emissions
Eases administrative burdens
Reduces costs to electricity consumers and utilities
• In the CPP, EPA is finalizing state plan designs that suit state needs
• Pathways for existing programs to reduce carbon emissions, individual state
plans and multi-state trading approaches
• Federal plan proposes option for model trading program a state may
then implement
• Invites comment on mass and rate based model trading programs for EGUs
• Invites comment on idea that all types of state plans can participate in trading
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Many CO2 Reduction Opportunities
•
•
•
•
•
•
•
•
•
•
•
•
Heat rate improvements
Fuel switching to a lower carbon content fuel
Integration of renewable energy into EGU operations
Combined heat and power
Qualified biomass co-firing and repowering
Renewable energy (new & capacity uprates)
• Wind, solar, hydro
Nuclear generation (new & capacity uprates)
Demand-side energy efficiency programs and policies
Demand-side management measures
Electricity transmission and distribution improvements
Carbon capture and utilization for existing sources
Carbon capture and sequestration for existing sources
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Incentives for Early Investments
•
EPA is providing the Clean Energy Incentive Program (CEIP) to incentivize early
investments that generate wind and solar power or reduce end-use energy demand
during 2020 and 2021
•
The CEIP is an optional, “matching fund” program states may choose to use to
incentivize early investments in wind or solar power, as well as demand-side energy
efficiency measures that are implemented in low-income communities
•
EPA will provide matching allowances or Emission Rate Credits (ERCs) to states that
participate in the CEIP, up to an amount equal to the equivalent of 300 million short
tons of CO2 emissions. The match is larger for low-income EE projects, targeted at
removing historic barriers to deployment of these measures. Also, states with more
challenging emissions reduction targets will have access to a proportionately larger
share of the match
•
The CEIP will help ensure that momentum to no-carbon energy continues and give
states a jumpstart on their compliance programs
•
EPA will engage with stakeholders in the coming months to discuss the CEIP and
gather feedback on specific elements of the program
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Design Preserves Reliability
• The Clean Power Plan includes features that reflect EPA's commitment to ensuring
that compliance with the final rule does not interfere with the industry's ability to
maintain the reliability of the nation's electricity supply:
• long compliance period starting in 2022 with sufficient time to maintain system
reliability
• design that allows states and affected EGUs flexibility to include a large variety of
approaches and measures to achieve the environmental goals in a way that is
tailored to each state’s and utility’s energy resources and policies, including
trading within and between states, and other multi‐state approaches
• requirement that each state demonstrate in its final plan that it has considered
reliability issues in developing its plan, including consultation with an appropriate
reliability or planning agency
• mechanism for a state to seek a revision to its plan in case unanticipated and
significant reliability challenges arise
• reliability safety valve to address situations where, due to an unanticipated event
or other extraordinary circumstances, there is a conflict between the
requirements imposed on an affected power plant and maintaining reliability
• EPA, Department of Energy (DOE) and the Federal Energy Regulatory Commission
(FERC) are coordinating efforts to monitor the implementation of the final rule to
help preserve continued reliable electricity generation and transmission
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Proposed Federal Plan
Overview
• The federal plan and model trading rules provide a readily available path
forward for Clean Power Plan implementation and present flexible,
affordable implementation options for states
• The model rules provide a cost-effective pathway to adopt a trading system
supported by EPA and make it easy for states and power plants to use
emissions trading
• Both the proposed federal plan and model rules:
• Contain the same elements that state plans are required to contain, including:
• Performance standards
• Monitoring and reporting requirements
• Compliance schedules that include milestones for progress
• Ensure the CO2 reductions required in the final CPP are achieved
• Preserve reliability
• Co-proposing two different approaches to a federal plan— a rate-based
trading plan type and a mass-based trading plan type
• Both proposed plan types would require affected EGUs to meet emission
standards set in the Clean Power Plan
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Proposed Federal Plan
How does it work?
• Will be finalized only for those affected states with affected EGUs that EPA
determines have failed to submit an approvable Clean Air Act 111(d) state plan by
the relevant deadlines set in the emission guidelines
• Even where a federal plan is put in place, a state will still be able to submit a plan,
which if approved , will allow the state and its sources to exit the federal plan
• EPA currently intends to finalize a single approach (i.e., either the mass-based or
rate-based approach) for every state in which it finalizes a federal plan
• Affected states may administer administrative aspects of the federal plan and
become the primary implementers
• May also submit partial state plans and implement a portion of a federal plan
• Affected states operating under a federal plan may also adopt complementary
measures outside of that plan to facilitate compliance and lower costs to the
benefit of power generators and consumers
• Proposes a finding that it is necessary or appropriate to implement a section
111(d) federal plan for the affected EGUs located in Indian country. CO2 emission
performance rates for these facilities were finalized in the Clean Power Plan
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Proposed Federal Plan – Public Hearings
• Pittsburgh, PA
Nov. 12th 9:00 a.m. – 8:00 p.m. (ET)
Nov. 13th 9:00 a.m. – 5:00 p.m. (ET)
• Denver, CO
Nov. 16th 9:00 a.m. - 8:00 p.m. (MT)
Nov. 17th 9:00 a.m. - 5:00 p.m. (MT)
• Washington, DC
Nov. 18th 9:00 a.m. - 8:00 p.m. (ET)
Nov. 19th 9:00 a.m. - 5:00 p.m. (ET)
• Atlanta, GA
Nov. 19th 9:00 a.m. - 8:00 p.m. (ET)
Nov. 20th 9:00 a.m. - 5:00 p.m. (ET)
http://www2.epa.gov/cleanpowerplan/forms/public-hearings-proposed-federal-plan-clean-power-plan
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Clean Power Plan Toolbox
• The toolbox provides information on state plan
development and can help states determine the
most cost-effective approaches to reducing
greenhouse gas emissions from the power sector
•
•
•
•
Clean Power Plan Documents and Resources
Technical Resources for Reducing CO2 from Power Plants
Policies and Programs for Reducing CO2 from the Power Sector
Estimating Potential Energy Efficiency and Renewable Energy (EE/RE) Impacts
http://www2.epa.gov/cleanpowerplantoolbox
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Initial CPP Supplemental Memo (10/22/15)
 Provides information on seeking an extension of time to submit a final plan
under 111(d)
 Required components of an extension request (due September 6, 2016):
1. An identification of final plan approach or approaches under
consideration and a description of progress made to date on the final
plan components;
2. An appropriate explanation of why the State requires additional time to
submit a final plan by September 6, 2018; and
3. A demonstration or description of the opportunity for public comment on
the initial submittal and meaningful engagement with stakeholders,
including vulnerable communities, during the time in preparation of the
initial submittal and the plans for engagement during development of the
final plan.
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CPP Webinars and Training
• Courses
• Provide information primarily for air regulators, air
quality professionals, energy professionals, community
members, and others interested in learning more about
the CPP
• In addition to the courses available now, new courses will
be added over time
• EPA Webinar Series for the Proposed Clean Power
Plan
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EPA Region 4 CPP Team (as of October 2015)
NAME
ORGANIZATION
ROLE
CONTACT
Beverly Banister
APTMD/IO
Overall Management Lead
404-562-9077
Beverly Spagg
APTMD/AETB
CPP Branch Chief
404-562-9170
Dick Dubose
APTMD/AETB
CPP Section Chief
404-562-9168
Todd Russo
APTMD/AETB
CPP Section Chief
404-562-9194
Ken Mitchell
APTMD/IO
R4 CPP Team Lead;
OAR CPP Regional Sublead
404-562-9065
Keith Goff
APTMD/AETB
FL and TN
404-562-9137
Dave McNeal
APTMD/AETB
MS and NC
404-562-9102
Ken Mitchell
APTMD/IO
KY
404-562-9065
Katy Lusky
APTMD/APIB
SC
404-562-9130
Terry Johnson
APTMD/APIB
GA and AL
404-562-8950
Danny Orlando
APTMD/CSS
Energy Efficiency
404-562-9087
Joydeb Majumder
APTMD/AETB
Renewable Energy
404-562-9121
Keri Powell
ORC
Legal Issues
404-562-9567
Christian Braneon
RA’s Office
Communities Support – FL, KY, SC, TN
404-562-9608
Makara Rumley
RA’s Office
Communities Support – GA, AL, MS, NC
404-562-8398
RA’s Office
R4 Energy and Climate Change Coordinator
404-562-9607
OExA
External Affairs Director

Press Office Staff

Press Office Staff

Press Office Staff

Press Office Staff

Social Media
404-562-8304
404-562-8421
404-562-9203
404-562-8293
404-562-9183
404-562-8010
Director

GA, AL, MS, NC

FL, KY, SC, TN
404-562-8346
404-562-9912
404-562-9603
STATE CONTACTS
CPP TOPIC-SPECIFIC GO-TO CONTACTS
REGION 4 ENERGY AND CLIMATE CHANGE COORDINATOR
Rafaela Moura
EXTERNAL AFFAIRS/PRESS INQUIRIES
Larry Lincoln

Dawn Harris-Young

Jason McDonald

Davina Marraccini

James Pinkney

Mary Cashin
CONGRESSIONAL/INTERGOVERNMENTAL RELATIONS
Allison Wise

Dionne Delli-Gatti

Bryan Myers
R4 OCIR
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Information and Resources
How can I learn
more?
After two years of unprecedented outreach, the EPA remains committed to engaging with all stakeholders as
states implement the final Clean Power Plan.

For more information and to access a copy of the rule, visit the Clean Power Plan website:
http://www2.epa.gov/carbon-pollution-standards

Through graphics and interactive maps, the Story Map presents key information about the final Clean
Power Plan. See: http://www2.epa.gov/cleanpowerplan

For community-specific information and engagement opportunities, see the Community Portal:
http://www2.epa.gov/cleanpowerplan/clean-power-plan-community-page

For additional resources to help states develop plans, visit the CPP Toolbox for States:
http://www2.epa.gov/cleanpowerplantoolbox

For a graphical and detailed walk through of the EGU category-specific CO2 emission performance rate
and state goals, see State Goal Visualizer: http://www2.epa.gov/cleanpowerplantoolbox

EPA provides webinars and training on CPP related topics. See: http://www.aptilearn.net/LMS/EPAPlanPage.aspx?c=16 and http://www2.epa.gov/cleanpowerplantoolbox/epa-webinarseries-proposed-clean-power-plan
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